CREDIT CARD TOP-UP DEBT PROTECTION PLAN

Transcription

1 CREDIT CARD TOP-UP DEBT PROTECTION PLAN First National Bank a division of FirstRand Bank Limited. An Authorised Financial Services and Registered Credit Provider. Company Reg. No. 1929/001225/06 NCA Reg No. NCRCP20 Product: Top-up Debt Protection Plan (TDPP) Product Provider (underwriter): FNB Life, a division of Momentum Group Limited Reg No. 1904/002186/06 This document together with the FNB Credit Card and Credit Card Facility Terms and Conditions governs your death, disability and retrenchment cover. Contractual relationships and accreditation FNB Credit Card a division of FirstRand Bank Ltd. An Authorised Financial Services and Registered Credit Provider. Company Reg. No. 1929/001225/06 NCA Reg No. NCRCP20, has entered into an intermediary agreement with FNB Life, a division of Momentum Group Limited Reg No. 1904/002186/06. FNB Life underwrites and administers the Top-up Debt Protection Plan, a long-term insurance policy, and has accredited FNB Credit Card to distribute this product. FNB Credit Card does not earn any commission on the insurance premium payable. FNB Life Registration number 1904/002186/ West Avenue Centurion 0157 In exchange for receipt of the premium stated in the credit card agreement on the date it is payable, we agree to cover you and your family in the event of your death or permanent disability from the outstanding debit balance of your personal FNB Credit Card or the specified maximum amount, whichever is the lesser, at the time of the event. In the event of temporary disability or retrenchment we will pay the minimum monthly installment as per your monthly statements, for up to 6 months, In order to claim your Risk Benefit Cover your account has to be in good standing. The Risk Benefit Cover is subject to the terms, conditions and exclusions contained in this Top-up Debt Protection Plan Policy Brochure Terms and Conditions or subsequent revisions to it. A: DEFINITIONS You, your The person or entity named as the cardholder in the credit card agreement. We, us, our, ourselves, insurer FNB Life, a division of Momentum Group Limited Reg No. 1904/002186/06.. First Insured Life An eligible person entered into a valid credit agreement with FNB Credit Card, which we have accepted and who has paid for the Top-up Debt Protection Plan. FNB Credit Card A business unit of First National Bank (FNB), a division of FirstRand Bank Limited, (Registration number 1929/001225/06), an Authorised Financial Services and Credit Provider NCA Reg. No. NCRCP20. Intermediary FNB Credit Card Top-up Debt Protection Plan May 2010 Page 1 of 12

2 FNB Credit Card, a division of FirstRand Bank Limited (Registration number 1929/001225/06), an Authorised Financial Services and Credit Provider NCA Reg. No. NCRCP20. Claims administrator and underwriter FNB Life, a division of Momentum Group Limited Reg No. 1904/002186/06. Communications The process in which we chose to communicate information with you. We may choose any one of the following channels, but not limited to: sms, , statement messages, faxes, post and/or telephone. Top-up Debt Protection Plan (TDPP) A Risk Benefit Cover agreement between you and us. Credit Agreement Any valid credit card agreement between you and FNB Credit Card. Risk Benefit Cover The life, disability and retrenchment (where applicable) cover you enjoy under this policy. Installment due date The day of the month on which your credit card repayment is due as per your monthly statements, as specified in the credit card agreement. Eligible person The Risk Benefit Cover is only available to persons who have entered into a credit card agreement and are younger than 70 years old. Commencement of Risk Benefit Cover The day on which we receive your first premium payment under the credit card agreement. Expiry of Risk Benefit Cover The date on which you turn 70 years of age or when your credit agreement ends will result in the expiry of the Risk Benefit Cover. Term of Risk Benefit Cover The number of months, including parts of months, from the date the credit card agreement starts until the expiry date of the credit card agreement or 70 years whichever occurs first. Permanent disability Total permanent disability certified by a properly qualified and registered medical practitioner (doctor) as a result of an illness, injury or accident, which cannot be healed or cured by any procedure or treatment and which, in our opinion, makes you permanently unable to do your normal job or a similar job you would have been able to do as a result of your experience, training, education and ability, and which disability makes you totally and permanently unable to earn an income. Temporary disability Temporary disability may arise from an illness, injury or accident, which in our opinion makes you unable to do your normal job or a similar job to the one you did for remuneration immediately before becoming disabled, for a period of at least one month and which has resulted in the total loss of your ability to earn an income for a temporary period of one month or more. We must receive a temporary disability certificate from a duly qualified and registered medical practitioner. Retrenchment Your forced retrenchment from employment, in terms of the Labour Relations Act, without income from any source as a direct result of: New technology being introduced by your employer; FNB Credit Card Top-up Debt Protection Plan May 2010 Page 2 of 12

3 Reorganisation by your employer; or Expectation of adverse conditions by your employer, which results in staff reductions. Medically certified An independent medical specialist has certified that you suffer from a specific condition. Goodstanding Your FNB Credit Card account will be regarded as not being in good standing in the following instances: If you default two consecutive times on your FNB Credit Card account; If you are accepted to undergo debt counselling; and/or If you are under special arrangement and you default twice during this arrangement Maximum liability The debt covered for death or permanent disability is the maximum specified amount or the outstanding debit balance of your personal FNB Credit Card account, whichever is the lesser at the time of the event. In the event of temporary disability or retrenchment we will pay the minimum monthly installment as per your monthly statements, for up to 6 months. Top-up Debt Protection Plan maximum specified amount: Credit Card Type TDPP Specified Maximum Amount Platinum R Gold R Silver R Smart R Petro (Standalone) R Premiums will be calculated on the maximum outstanding amount during the month, minus the free portion offered under Automatic Debt Protection (ADP), limited to the specified maximum amount of the Top-Up Debt Protection Plan (TDPP). Automatic Debt Protection (ADP) and Top-up Debt Protection Plan (TDPP) maximum specified amount and premiums outlined below: Automatic Debt Protection (ADP) Product Name Premium Specified Maximum Amount Top-up Debt Protection Plan (TDPP) Premium Specified Maximum Amount Total Cover (ADP + TDPP) FNB PetroCard (Standalone) Free R1 000 R6 / R1 000 R9 000 R FNB Smart Credit Card Free R1 000 R6 / R1 000 R R FNB Silver Credit Card Free R4 000 R6 / R1 000 R R FNB Gold Credit Card Free R8 000 R5 / R1 000 R R FNB Platinum Credit Card Free R R5 / R1 000 R R FNB Credit Card Top-up Debt Protection Plan May 2010 Page 3 of 12

4 B: RISK BENEFIT COVER 1. In the event of your death (Death) Automatic Debt Protection and Top-up Debt Protection Plan The debt covered for death or permanent disability is the maximum specified amount or the outstanding debit balance of your personal FNB Credit Card account, whichever is the lesser at the time of the event. We will not pay any arrear installments, interest or fees that became payable before your death. We will not settle any purchases/spend made after your date of death. However, should your account not be in good standing at the time of the event, no benefit will be paid out to you. 2. If you become permanently disabled (Permanent Disability) Automatic Debt Protection and Top-up Debt Protection Plan The debt covered for death or permanent disability is the maximum specified amount or the outstanding debit balance of your personal FNB Credit Card account, whichever is the lesser at the time of the event. We will not pay any arrear installments, interest or fees that became payable before you became permanently disabled. We will not settle any purchases made during the period of your permanent disability. However, should your account not be in good standing at the time of the event, no benefit will be paid out to you. 3. If you become temporarily disabled (Temporary Disability) Top-up Debt Protection Plan We will pay your minimum monthly FNB Credit Card installments as per your monthly statements for a maximum period of 6 (six) months. Starting on the second due date of your FNB Credit Card installment, after the date you become temporarily disabled. We will not pay any arrear installments, interest or fees that became payable before you became disabled. If we, in our sole discretion, find that you are still disabled after the first six month period, we will continue to make similar payments for a maximum period of another six months. If we find that you are still disabled after this period, we will settle a specified maximum amount or the remaining outstanding debit balance of your personal FNB credit card, whichever is the lesser, before terminating your Risk Benefit Cover. This Risk Benefit Cover is limited to a maximum of two claims on your account. We will not settle any purchases made during the period of your temporary disability. However, should your account not be in good standing at the time of the event, no benefit will be paid out to you. 4. If you are retrenched (Retrenchment) Top-up Debt Protection Plan We will pay your minimum monthly FNB Credit Card installments as per your monthly statements for a maximum period of 6 (six) months. Starting on the second due date of your FNB Credit Card installment, after the date you have been retrenched. We will not pay any arrear installments, interest or fees that became payable before you were retrenched. This Risk Benefit Cover is limited to a maximum of one claim on your account. We will not settle any purchases made during the period of your retrenchment. However, should your account not be in good standing at the time of the event, no benefit will be paid out to you. 5. Termination The policy will end when one of the below events occur: 5.1 At expiry of the Risk Benefit Cover; FNB Credit Card Top-up Debt Protection Plan May 2010 Page 4 of 12

5 5.2 Once we have paid out a Risk Benefit Cover amount on death or permanent disability; 5.3 Once we have paid out two claims on your account for retrenchment or temporary disability; 5.4 If you have not paid two or more minimum monthly installments on your FNB Credit Card account; 5.5 Upon your 70 th (seventieth birthday); 5.6 If you are accepted to undergo debt counselling; or 5.7 If you are under special arrangement and you default twice during this FNB Credit Card Special Arrangement C: GENERAL EXCLUSIONS 1. Exclusions applicable to death and disability We will not pay any amount if we know that: 1.1. Your illness, bodily injury, physical defect, ill-health or any other incident or condition that played an important role in your death or disability claim under the policy existed or took place before this Risk Benefit Cover started; 1.2. The claim is in any way due or can be traced to, or arises directly or indirectly, entirely or partially, from: The driving of any vehicle while you were under the influence of intoxicating liquor/alcohol or a drug having a narcotic effect or if your blood alcohol levels exceeded the legal limit; Suicide within the first 24 months of the commencement of the Risk Benefit Cover, self-inflicted injury or self-inflicted illness (i.e. that you caused yourself), whether you intended to do so or not, or if you exposed yourself to danger or obvious risk of injury at your own free will; Intentionally taking too much alcohol, drugs or narcotics unless this was prescribed by a medical doctor. If the substance was, however, prescribed to treat drug abuse it will also be excluded; Participating in a criminal act; Involvement or participation in any war, invasion, acts of foreign enemy, hostilities (whether war is declared or not), civil war, mutiny, rebellion, usurped power, riot, civil commotion or public disorder; and/or If your account is not in good standing with us. 2. Exclusions applicable to retrenchment We will not pay any amount: 2.1. If you are retrenched within the first 90 days after the commencement of the Risk Benefit Cover; 2.2. If your employment ended due to your resignation or if you accepted voluntary retrenchment, if a non-renewable fixed term contract of a temporary or casual nature is not renewed, any form of retirement or fair dismissal under your contract of employment; 2.3. If you, your employer or we were aware that you were going to be retrenched before the commencement of the Risk Benefit Cover; FNB Credit Card Top-up Debt Protection Plan May 2010 Page 5 of 12

6 2.4. If you lose your job due to fraud, dishonesty or any illegal conduct by you; 2.5. If you lose your job directly or indirectly due to any illness, disease, injury or medical condition; 2.6. After you have been re-employed, after the end of the term of the Risk Benefit Cover or after six credit card payments have been made in terms of the Risk Benefit Cover, whichever takes place first; 2.7. If you are retrenched as a result of your participation in any strike action, labour disturbance, unrest, political activity, civil commotion, public disorder or riot; and/or 2.8. If your account is not in good standing with us. 3. General 3.1. The Top-up Debt Protection Plan does not cover spend on your FNB Credit Card after the lodging of a claim Should your account not be in good standing at the time of the event, no benefit will be paid out to you Employees of FNB Credit Card are trained and accredited to explain the contents of the Top-up Debt Protection Plan (Long Term Insurance) to interested clients First national Bank holds professional indemnity insurance FNB Credit Card does not earn any commission for selling these products. D: PROVISIONS AND CONDITIONS 1. Eligibility Limitations 1.1. You must be 18 years of age to qualify The maximum age at entry is 69. The Risk Benefit Cover will end on your 70 th birthday If you are not entitled to be insured but we issued a Risk Benefit Cover policy to you nevertheless, such Risk Benefit Cover will be invalid from the start and we will pay back your TDPP premiums. 2. Medical Examination We have the right to request you to undergo a medical examination at any reasonable time after you have submitted a claim. FNB Life will pay for the examination and will tell you which doctor to go to. The medical practitioner s report will be final and binding on you and us (i.e. if you or we do not like what is stated in the report, neither you nor we can go to another practitioner to get a different report). 3. Fraud If any claim under this policy is in any way fraudulent, if you or anyone acting on your behalf uses any fraudulent means to obtain a benefit under this policy or if you intentionally cause or work with someone else to cause any of the events we insure you against, you will not be entitled to payment of any benefit under this policy and you will further not be entitled to a refund of any of the premiums you have paid. 4. Claims FNB Credit Card Top-up Debt Protection Plan May 2010 Page 6 of 12

7 4.1. To claim, do the following: What you have to do Contact us on: Tel: How long you have to do it Within 120 days after the occurrence of the event you are claiming for. Fax: Deliver the following to us: All relevant information in writing Within 90 days after you informed us of the event occurrence. Details of the claim in writing All documents supporting the claim 4.2. You will have to pay the costs to obtain all the relevant information and documentation we need when you submit a claim We will not pay any claims unless we receive the premium within 30 days of the premium due date We will not consider your claim if you or the beneficiary you nominated cannot give us documents acceptable to us that prove the claim and the facts giving rise to it When we have paid the retrenchment, death or temporary/permanent disability benefits under this policy to you or to the beneficiary you have nominated, we will have fully and effectively discharged our liability under this policy. That means that you will not be able to claim anything else from us and that we will not pay you anything else We will not pay out any claims if you have not complied with the policy conditions contained herein We will not pay out any claims if your account is not in good standing. 5. General Conditions 5.1. Prescription You will have no claim under these policies if you do not claim within the 120 day period stipulated above. We will not be liable for any claim, unless there is a court case pending in respect of the matter Review Period If we dispute or reject your claim (i.e. we say that you are not entitled to the benefit), you may make representations to us within 90 days of receiving the letter disputing or rejecting your claim. In other words, within 90 days you must write to us and tell us why you think you are entitled to payment of the benefit. If we still dispute or reject your claim, you must refer the matter to the Long-Term Insurance Ombudsman (see details of the Ombudsman in Regulatory disclosures) Misrepresentation If you failed to give us the correct information (misrepresentation) or gave us the wrong description of something (misdescription) or failed to give us certain important information (non-disclosure) we have the right to cancel this plan and keep the premiums you have paid Change of details FNB Credit Card Top-up Debt Protection Plan May 2010 Page 7 of 12

8 You must immediately inform us of any changes in the details you supplied on your application for this plan within 14 days after the changes have taken place Amendment or change of the plan and/or premium We have the right to amend the plan and/or premiums you must pay from time to time by means of an endorsement we have signed and that we send to you or to the agent acting on your behalf. Reasonable notice will be given if any amendments are made. 6. Communications We will send any legal notice or communication via post to the domicilium address, and/or fax you provided to FNB Credit Card. We will utilise any other means of communications to relay information to you, which we deem necessary. We will not be liable for any claims if the necessary information is sent to the contact details you provided to us and they are incorrect or they have subsequently changed and you did not notify us. 7. Special Conditions The starting date of the Risk Benefit Cover under this plan may not be backdated (i.e. the plan may not start from an earlier date than the current date). This plan does not cover any additional amounts deducted, arrear installments, interest on arrear installments and fees in terms of the credit card agreement with us. 8. Currency and laws All payments in terms of this plan must be made in South African Rands and any legal issues will be decided according to South African law. 9. Legislative requirements Despite anything else in this plan, we will have the right to do all things we think are necessary or suitable to comply with the provisions or requirements of any applicable Acts and/or other rulings by governmental authorities. 10. Proceeds of your plan It is recorded that, if a benefit is paid out, you or your beneficiaries will not get the proceeds, but it will be paid directly into your FNB Credit Card account to settle your outstanding debt. 11. General Employees of FNB Credit Card are trained and accredited to explain the contents of the Top-up Debt Protection Plan (Long Term Insurance) to interested clients. FNB Credit Card holds professional indemnity insurance. 12. Complaints and compliance procedure 12.1 If you wish to lodge a complaint, please do so in writing and fax to Your complaint will be responded to as soon as possible. If you do not get a response within 5 (five) working days from sending your complaint, kindly call to check whether your complaint has been received. If your complaint cannot be resolved within a reasonable time you may escalate the complaint to the CEO Complaints Liaison Officer on or fax to If your enquiry or dispute is not satisfactorily resolved within six weeks from the date that you have lodged such complaint, you may contact the FAIS Ombudsman or you can seek assistance from the Financial Services Board within six months. Compliance with these procedures does not affect your legal rights. FNB Credit Card Top-up Debt Protection Plan May 2010 Page 8 of 12

9 12.2 The function of the Compliance Officer is to ensure that legislative requirements are met, in particular those relating to disclosure as described in the FAIS Rules, and to facilitate the resolution of disputes arising between the parties involved in the insurance contract. Service complaints will be forwarded to senior management for further attention. If you have any complaint about this policy, please ask to speak to: FNB CREDIT CARD COMPLIANCE OFFICER Physical Address The Compliance Officer 3 rd Floor 1 First Place BankCity cnr Simmonds and Pritchard Streets Johannesburg 2001 Postal address First National Bank P O Box 1153 Johannesburg 2000 Tel: (011) Fax: (011) Regulatory Disclosure: Disclosure and other legal requirements (this notice does not form part of the insurance contract). As a long-term insurance policyholder, or prospective long-term insurance policyholder, you have the right to the following information: 13.1 Your right when being advised to replace an existing policy: You may not be advised to cancel a policy to enable you to purchase a new policy or amend an existing policy unless: The intermediary identifies the policy as a replacement policy o The implications of the cancellation of the policy are disclosed to you, such as: o The influence on your benefits under the old policy The additional cost incurred with the replacement The insurer that issued the original policy will contact you and you are advised to discuss matter with their representative Important warning It is very important that you are quite sure that the product or transaction meets your needs and that you feel you have all the information you need before making a decision. This insurance risk benefit is not intended to satisfy all your life insurance needs. It is recommended that you discuss with your financial advisor, intermediary or insurer the possible impact of the proposed transaction on your finances, your other policies or your broader investment portfolio. You should also ask for information about the flexibility of any proposed policy. The pricing and/or details of the policy are reviewable by FNB and/or its underwriters from time to time and these changes will be communicated to you in writing. There is a 30-day, no obligation period on this policy and should you decide to cancel the policy within 30 days, you must submit your request in writing to FNB Credit Card, PO Box 1420, Johannesburg, the FNB Credit Card Top-up Debt Protection Plan May 2010 Page 9 of 12

10 Where paper forms are required, only sign them once they are fully completed. Make notes regarding verbal information and to ask for written confirmation or copies of documents. Please find attached a copy of section 48 of the Long-term Insurance Act, Remember that you may contact either the Long-term Insurance Ombudsman, the Registrar of Long-term Insurance or the FAIS Ombudsman, whose details are set out below, if you have any concerns regarding a product sold to you or advice given to you Particulars of the Long-Term Insurance Ombudsman (Product related complaints) Physical address The Long-term Insurance Ombudsman Private Bag X45 Claremont 7735 Postal Address Po Box Lynwood Ridge 0040 Tel: Fax: Particulars of the FAIS Ombudsman (Advice related complaints) PO Box Lynwood Ridge 0040 Tel: Fax: Particulars of the Registrar of Long-Term Insurance Financial Services Board PO Box Menlo Park 0102 Tel: Fax: Ombudsman for Banking Services Contact Details PO Box 5728 Johannesburg 2000 Tel: Fax: FNB Life, a division of Momentum Group Ltd. FNB Life Compliance Department PO Box 8757 Centurion 0046 Tel: or Contact FNB Credit Card Physical Address FNB Credit Card 3 First Place FNB Credit Card Top-up Debt Protection Plan May 2010 Page 10 of 12

11 BankCity Cnr Jeppe & Simmonds Street Johannesburg 2001 Postal Address PO Box 1420 Johannesburg 2001 FNB Website FNB Credit Card Important FNB Credit Card Numbers FNB Credit Card Customer Enquiries (Smart, Silver and Gold Credit Card Holders) Tel: Platinum Service Centre Tel: Complaints Fax No Tel: FNB Credit Card Top-up Debt Protection Plan May 2010 Page 11 of 12

12 Long Term Insurance Act, 1998 (Act No. 52 of 1998) Part VII Business practice, policies and policyholder protection Business practice 48. Summary, inspection and copy of policy 1) A person who enters into or varies a long-term policy, other than a fund policy and a reinsurance policy, shall be provided in writing or in another form prescribed by the Registrar, by the long-term insurer concerned, with information, in the form of a summary, relating to at least the following matters, namely-- a) those of the representations made by or on behalf of that person to the insurer which were regarded by that insurer as material to its assessment of the risks under the policy; b) the premiums payable and the policy benefits to be provided under the policy; and c) the events in respect of which the policy benefits are to be provided and the circumstances (if any) in which those benefits are not to be provided, and shall be provided with that information as soon as possible, but not later than 60 days after the parties enter into or agree to vary the policy. 2) The summary referred to in subsection (1) shall be prima facie proof of the agreement, but shall-- a) not be deemed to be part of the policy; b) in the absence of evidence to the contrary, be deemed to be exhaustive of the matters which are material to the assessment of the risks under the policy. 3) The policyholder shall be entitled to be provided, upon request, with a copy of the policy. FNB Credit Card Top-up Debt Protection Plan May 2010 Page 12 of 12